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In November 2024, there were 92,640 transactions reported, reflecting a 12.9% increase compared to the same time last year. This growth is a positive indicator for the property market, supported by an 11% rise in sales being agreed. The latest RICS survey also shows that 16% more respondents expect sales activity to grow in the next three months, reinforcing optimism for the year ahead.

On the demand side, 65,720 mortgage approvals were recorded in November, a 31% increase from the previous year. Rightmove also reported a 9% year-on-year rise in home buyer demand, and the December RICS survey, while showing a slight dip in new buyer enquiries, still indicated an increase of 5%.

Mortgage rates have remained relatively steady, despite a rise in swap rates, which has led to a slight increase in rates from some larger lenders. This follows the uncertainty around the Autumn Budget. While the exact timing is unclear, reports suggest the Bank of England is expected to make further interest rate cuts this year. Any improvements in the base rate could help stabilise mortgage rates and enhance affordability, particularly in more expensive areas.

Barclays Property Insights continues to reflect a positive outlook, with their recent report stating that 1 in 6 people plan to move in 2025. This indicates a busy year ahead for the market. With rising demand and anticipated interest rate cuts, we can expect continued activity across the property market.

If you’re considering your next move or just want to discuss the current trends, don’t hesitate to reach out to our team—let’s help you navigate what’s shaping up to be an exciting year ahead.

Sources: Bank of England, Rightmove, Dataloft by PriceHubble, ONS, UK HPI, Zoopla, Halifax

Local Market Roundup

The latest Land Registry data for the year ending September 30th, 2024, reveals 3,339 property transactions across the WR postcode area, marking a 22% decline from the previous year. Worcester accounted for 1,490 transactions, down 21%; Malvern recorded 497 transactions, a decrease of 17%; and Droitwich saw a 22% drop, with 379 transactions.

During the same period, the average sale price across the WR postcode area was £290,813. Houses, which accounted for 88% of sales, had an average price of £317,735, while flats, making up 12%, averaged £149,812. Malvern’s average rose to £310,453, Droitwich saw a 1% increase to £289,318, and Worcester held steady at £262,312.

The increase in average sales price over the last five years is shown below:

Source: Dataloft, Land Registry

Over the past year, the average rent for properties in Worcestershire increased to £890 per month, reflecting a 5% rise compared to the previous 12 months. Flats, which accounted for 40% of the rental market, averaged £733 per month, while houses, making up 60%, achieved an average of £1,028 per month.

In Droitwich, rents climbed by 8% to £846 per month, with flats averaging £656 and houses £1,124. Malvern experienced a 15% increase, reaching £927 per month, with flats at £856 and houses at £969. Worcester’s average rent rose by 5% to £879 per month.

Source: Dataloft Market Rental Analysis (rental data is limited and based on achieved rents for approximately 10-15% market share, depending on location)

National Market

For the year ending September 30th, 2024, the average UK property price was £289,707, reflecting a 3.3% year-on-year increase. The average price of properties coming to market rose by 1.7% to £366,189, marking the largest early-year price jump since 2020. This positive momentum is supported by Zoopla, which forecasts a further 2.5% increase in house prices in 2025.

 

Economy

In the economy, the Bank of England Base Rate remains at 4.75% and will be reviewed at the next Monetary Policy Committee meeting on Thursday, 6th February. CPI inflation, reported on 15th January, stands at 2.5%, a slight decrease from 2.6% in November. Monthly GDP is estimated to have fallen by 0.1% in October, following a similar decline of 0.1% in September, according to the Office of National Statistics.

Amid ongoing uncertainty following the Autumn Budget, swap rates have risen again, keeping mortgage rates steady overall, though some larger lenders have introduced increases.

From April 2025, the residential SDLT threshold will return to its pre-2022 level of £125,000. If you’re planning a move, contact our team to help you navigate this change with confidence.

Lettings Market

In December 2024, the average UK rent stood at £1,284, marking a 1.8% decrease from November but still 1.3% higher year-on-year. Rental growth is projected to stabilise, with Hometrack forecasting a 4% increase in rents for new lets over 2025. Void periods remained steady at 21 days in December, indicating a more balanced and stable market as we begin 2025.

We still await further clarity on the recently announced Renters’ Rights Bill, we do know that it is likely to bring major changes to the rental market, including a shift to rolling periodic tenancies, revised notice periods, and stricter regulations on rent increases. Although the bill still requires further review and amendments before becoming law, these changes could significantly shape both current and future property portfolios.

If you’re a landlord with questions, our experienced lettings manager, James, is here to offer valuable insights and support. James has also recently released his book, Home, a comprehensive guide for current landlords and those looking to invest in property. You can purchase a copy, available in both paperback and Kindle, by clicking here.  

Market Insight

This market update draws from a range of trusted sources to provide you with clear, evidence-based insights to guide your property decisions. Our team is committed to staying updated on latest market trends and legislative changes, ensuring you have the most current and relevant information.

If you’re thinking of making a move, this update offers valuable insights to help guide your decision-making. Our expert mortgage advisors are on hand to provide personalised advice, helping you determine whether moving or remortgaging is the best option for you. We’re here to ensure you make informed choices for a seamless transition in the year ahead. For more information, click here. 

Feel free to reach out to us anytime. We’re here to assist you in making informed property decisions and navigating your property journey.

For additional insights, follow us on social media, where we share regular updates, including our weekly Mortgage Watch, available on the Nicol & Co Instagram page @nicolandco_estateagents or through @Matt_the_Agent.